Russel Metals (RUS) AI Stock Analysis

• Market Cap: $2.42B
• Dividend Yield: 4.18%
• Average Volume (3M): 137.80K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.98
• Revenue Growth: -0.13%
• EPS Growth: -33.06%
• Country: CA
• Employees: 3,970
• Sector: Industrials
• Sector Strength: 91
• Industry: Industrial - Distribution
• EPS (TTM): 0.75
• Shares Outstanding: 57,100,000
• 10 Day Avg. Volume: 163,719
• 30 Day Avg. Volume: 137,801
• PEG Ratio: -1.33
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.88
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $51.40
• Price Target Upside: 21.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Russel Metals demonstrates a stable financial foundation with strong cash management and strategic investments. While there are challenges in revenue and profitability, the company maintains a robust balance sheet and attractive valuation metrics. Positive corporate events and a favorable earnings call sentiment further bolster its outlook, despite some market uncertainties.

Russel Metals Business Overview & Revenue Model

Company Description

Russel Metals Inc. operates as a metal distribution company in North America. The company operates through three segments: Metals Service Centers, Energy Products, and Steel Distributors. The Metal Service Centers segment sells plates, flat rolled carbon, stainless steel, aluminum, and other non-ferrous specialty metal products, as well as general line steel products, such as plates, structural shapes, bars, sheets, pipes, tubing, and hollow structural steel tubing. It also offers services, including fiber tube and flat laser processing; multi-dimensional press braking and rolling; shearing, slitting, and cutting to length; laser, oxy-fuel, and plasma cutting; stretcher and traditional leveling; beam drilling, notching, coping, and tee-splitting; saw cutting; edge trimming; and cambering. This segment serves customers in industries, such as machinery and equipment manufacturing, construction, ship building, and natural resources. The Energy Products segment distributes flanges, valves, fittings, and tubular goods primarily to energy industry. The Steel Distributors segment operates as a steel distributor for steel service centers and large equipment manufactures. Russel Metals Inc. was incorporated in 1929 and is headquartered in Mississauga, Canada.

How the Company Makes Money

Russel Metals generates revenue primarily through the sale and distribution of metal products. The metals service centers segment processes and distributes metal products, serving as a critical link between metal producers and end users. The energy products segment focuses on the distribution of products used in the oil and gas industry, such as oil country tubular goods, line pipe, and fittings. The steel distributors segment buys steel in bulk from producers and sells it to customers, benefiting from economies of scale. Significant revenue drivers include the demand for metal products in construction and industrial sectors, fluctuations in metal prices, and the company's ability to efficiently manage inventory and logistics. Strategic partnerships with metal producers and a strong distribution network also play a crucial role in the company's earnings.

Russel Metals Financial Statement Overview

Summary

Russel Metals shows a mix of strengths and weaknesses across its financial statements. The balance sheet reflects strong equity and improved leverage, while cash flow remains robust. However, the income statement indicates declining revenue and profitability challenges.

Income Statement

Russel Metals experienced fluctuating revenues over the past years, with a notable decline in 2024. The gross profit margin in 2024 was 20.88%, a decrease from previous years, reflecting reduced operational efficiency. The absence of EBIT in 2024 indicates challenges in maintaining profitability. The EBITDA margin for 2024 was 7.39%, showing some resilience despite revenue decline, but significantly lower than previous years' margins.

Balance Sheet

Russel Metals maintains a strong equity position, with an equity ratio of 70.66% in 2024, indicating a stable financial structure. The debt-to-equity ratio improved to 0.12 in 2024, reflecting lower financial leverage. Return on equity (ROE) for 2024 was 9.71%, a decrease from previous years, suggesting reduced profitability for shareholders.

Cash Flow

Cash flow from operations was strong at $343.9 million in 2024, though down from 2023. Free cash flow was $253.7 million in 2024, indicating solid cash management. The free cash flow to net income ratio was 1.58, showing that the company generates significant cash beyond net income, albeit decreased compared to previous years.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.26B	4.51B	5.07B	4.21B	2.69B
	Gross Profit
889.90M	956.50M	1.13B	1.21B	518.70M
	EBIT
223.00M	560.20M	514.10M	608.40M	91.30M
	EBITDA
315.50M	428.20M	580.40M	657.90M	125.20M
	Net Income Common Stockholders
161.00M	266.70M	371.90M	432.20M	24.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
45.60M	629.20M	363.00M	133.10M	26.30M
	Total Assets
2.35B	2.57B	2.51B	2.31B	1.60B
	Total Debt
196.80M	422.50M	422.90M	404.30M	399.40M
	Net Debt
151.20M	-206.70M	59.90M	271.20M	373.10M
	Total Liabilities
688.30M	930.20M	947.60M	1.07B	731.60M
	Stockholders Equity
1.66B	1.64B	1.56B	1.25B	864.70M
Cash Flow		Free Cash Flow
253.70M	389.00M	318.40M	275.70M	346.10M
	Operating Cash Flow
343.90M	461.70M	359.90M	304.50M	371.00M
	Investing Cash Flow
-417.70M	-5.30M	-6.50M	-107.20M	-27.30M
	Financing Cash Flow
-537.90M	-184.90M	-139.10M	-93.50M	-327.10M

Russel Metals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RUS, the sentiment is Positive. The current price of 42.42 is above the 20-day moving average (MA) of 40.51, above the 50-day MA of 39.43, and above the 200-day MA of 40.07, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 66.38 is Neutral, neither overbought nor oversold. The STOCH value of 78.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RUS.

Russel Metals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIH	78 Outperform	C$9.54B	19.33	17.36%	1.67%	10.93%	-3.34%
FTT	77 Outperform	C$6.90B	14.38	18.79%	2.15%	6.61%	1.87%
MTL	74 Outperform	C$1.25B	11.65	10.81%	5.59%	3.28%	-14.21%
RUS	73 Outperform	$2.42B	15.98	9.30%	4.18%	-0.13%	-33.06%
WJX	73 Outperform	C$516.05M	12.57	8.09%	5.88%	-2.65%	-47.65%
Sector *	64 Neutral	$4.44B	11.99	5.16%	249.23%	4.01%	-11.87%
ARE	50 Neutral	C$1.22B	―	-9.26%	3.93%	1.70%	-154.73%

Russel Metals Corporate Events

Russel Metals Announces 2025 Shareholder Meeting Results

Russel Metals Inc. announced the results of its 2025 annual meeting of shareholders, where 60.91% of common shares were represented. All nominee directors were elected with strong support, and the advisory ‘say on pay’ resolution was approved by 79.38% of votes. KPMG LLP was appointed as the company’s auditors. This outcome reflects shareholder confidence in the company’s leadership and strategic direction.

Spark’s Take on TSE:RUS Stock

According to Spark, TipRanks’ AI Analyst, TSE:RUS is a Outperform.

Russel Metals shows strengths in cash flow management and strategic investments, supported by a solid balance sheet. While technical indicators suggest cautious optimism, challenges in revenue and profitability are notable. Valuation metrics are attractive, and recent corporate developments further strengthen the company’s position.

To see Spark’s full report on TSE:RUS stock, click here.

Russel Metals Reports Strong Q1 2025 Results and Strategic Expansion

Russel Metals Inc. reported strong financial results for the first quarter of 2025, with revenues reaching $1.2 billion and EBITDA at $86 million, driven by record quarterly shipments and favorable market conditions. The company achieved significant milestones, including a 2.4% increase in quarterly dividends, a $300 million issuance of senior unsecured notes, and a strategic expansion of its U.S. platform, enhancing its capital structure and market positioning.

Spark’s Take on TSE:RUS Stock

According to Spark, TipRanks’ AI Analyst, TSE:RUS is a Outperform.

Russel Metals maintains a solid financial foundation with effective cash management and low leverage, though it faces challenges in revenue and profitability. Technical analysis suggests a stable market position, while valuation metrics indicate attractiveness. The company’s strategic investments and recent corporate events further bolster its positive outlook, despite some market uncertainties.

To see Spark’s full report on TSE:RUS stock, click here.

Russel Metals Enhances Financial Flexibility with Credit Facility Amendments

Russel Metals Inc. has extended its $450 million credit facilities to April 2029, removing the springing lien provision and maintaining unsecured facilities with investment-grade covenants. The company also canceled a $150 million sidecar facility following a $300 million debt issuance, enhancing liquidity and financial flexibility to support strategic initiatives.

Spark’s Take on TSE:RUS Stock

According to Spark, TipRanks’ AI Analyst, TSE:RUS is a Outperform.

Russel Metals presents a stable financial performance with strong equity, effective cash management, and strategic investments. The stock’s valuation is attractive due to a reasonable P/E ratio and high dividend yield. Despite current technical indicators showing some bearish momentum, the company’s strategic initiatives, including recent corporate events like the note offering, support a positive outlook. Challenges such as market volatility and revenue declines need monitoring, but overall, Russel Metals appears well-positioned for future growth.

To see Spark’s full report on TSE:RUS stock, click here.

Russel Metals Secures $300 Million Through Note Offering

Russel Metals Inc. has successfully closed a $300 million offering of senior unsecured notes, rated BBB (low) with a stable trend by DBRS Limited. The proceeds will be used for general corporate purposes, potentially enhancing the company’s financial flexibility and supporting its operations across North America.

Russel Metals Launches $300 Million Investment Grade Note Offering

Russel Metals Inc. has announced a $300 million offering of senior unsecured notes with a 4.423% coupon and a five-year maturity, aimed at re-establishing a base level of lower-cost term debt in its capital structure. This strategic move is part of Russel Metals’ ongoing efforts to strengthen its business portfolio and balance sheet with an investment-grade approach. The notes, which do not include financial or maintenance covenants, are expected to enhance the company’s financial flexibility and are being offered on a private-placement basis in Canada. The offering is led by RBC Capital Markets and Scotia Capital Inc., and is anticipated to close around March 28, 2025.